L Brands Stock Dips on Victoria's Secret Spinoff Announcement

The security is up over 477% year-over-year

Digital Content Manager
May 11, 2021 at 10:10 AM
facebook X logo linkedin


The shares of L Brands Inc (NYSE:LB) are down 3.3% to trade at $66.52 at last check, after the retail name announced it is splitting into two publicly traded companies -- Bath & Body Works and Victoria's Secret. The split, which will be completed in August, comes after L Brands decided not to sell its lingerie brand. Additionally, the company posted an upbeat first-quarter revenue outlook.

Just yesterday, the security hit a five-year high of $71.35. Shares have been tearing up the charts over the past 12 months, with support from the 80-day moving average, which contained the equity's January pullback. Year-over-year, LB sports a whopping 477.2% lead. 

Analysts are still split towards L Brands stock, with nine of the 17 in coverage carrying a "buy" or better rating, while eight carried called it a "hold." Plus, the 12-month consensus price target of $68.30 is right in line with current levels, indicating LB may be overdue for a round of price-target hikes and/or upgrades.

Additional tailwinds could come in the form of a shift in the options pits. This is per the stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than all but 2% of readings from the past year.

Echoing this, L Brands stock's Schaeffer's put/call open interest ratio (SOIR) of 0.65 sits in the elevated 85th percentile of the equity's annual range, meaning short-term option traders have rarely been more put-biased. 

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI